GoPro, Inc. · NASDAQ:GPRO
GoPro — Q2 2022 Earnings Presentation
37 slides from GoPro's earnings presentation, Aug 4, 2022
Slide 1: Investor Presentation
Speaker/ Date/ Subtitle Investor Presentation August 4, 2022 Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 2: Safe harbor statement
Safe harbor statement This presentation may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “should,” “will” and variations of these terms or
Slide 3: Our values define and align us
Our values define and align us Make friends Collaborate and include. Strength in numbers. Obsessively serve Put consumer interest first. Harness the power of WOW Exceed expectations. Stay agile Be willing to adapt and commit. Be a HERO Take responsibility. Integrity, always. Confidential information
Slide 4: We help the world capture and share itself in immersive and exciting ways
We help the world capture and share itself in immersive and exciting ways Confidential information. Copyright © 2022 GoPro, Inc. All rights reserved.
Slide 5: We have created a well-established brand
We have created a well-established brand 41M+ GOPRO CAMERAS SOLD2 ACTIVE PAYING GOPRO # 1 3.6B+ GOPRO’S YOUTUBE CHANNEL SUBSCRIBERS3 48M+ SOCIAL FOLLOWERS ACROSS HERO10 BLACK BEST-SELLING CAMERA IN THE U.S. CAMCORDER LIFETIME VIEWS2 ALL PLATFORMS2 MARKET1 10M+ 10M+ 22M+ YOUTUBE SUBSCRIBERS2 FACEBOOK
Slide 6: Executing on our strategy
Executing on our strategy < 2019 2020 2021 2Q22 YTD Hardware Only Hardware + Subscription Hardware + Subscription + Hardware + Subscription + Service Service Retail > 90% Retail 68% / DTC 32% ~Retail 66% / DTC 34% ~Retail 62% / DTC 38% 33% – 35% Gross Margin2 36% Gross Margin 41% Gross Margin 40% Gr
Slide 7: Strategic metrics driving financial performance
Strategic metrics driving financial performance1 87% CAGR 10% CAGR 1Unless otherwise noted, charts above are based on data as of full year for FY18-21 and Q2YTD FY22. 2Camera ASP mix based on sell-through units. 3GoPro subscribers, exclusive of Quik. 4"Street" ASP defined as revenue divided by camer
Slide 8: Subscription & service revenue value proposition
Subscription & service revenue value proposition 41M+ • Financial incentive focused today ~6% OF TOTAL REVENUE1 1.91M GOPRO CAMERAS SOLD2 • ACTIVE PAYING GOPRO SUBSCRIBERS3 Forward looking: SUBSCRIBERS2 o User financial incentive o Enhance value-add services ~95% 30-35% o o Increase stickiness Grow
Slide 9: Our Products
Our Products Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 10: A seamless ecosystem
A seamless ecosystem Capture 1 Hosted by AWS Product Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved. Cloud1 + Editing
Slide 11: A technology innovator
A technology innovator CAPTURE INNOVATION AUTOMATED GOPRO APP HYPERSMOOTH 4.0 STORYTELLING Next Gen Capture Leads Quik, Mobile & Cloud Visual & Audio Syncing To Next Gen Sharing Storage Capabilities In 1Q22, GoPro was honored with its second Emmy® Award in the category of “In Camera Sensor and Softw
Slide 12: Versatile Storytelling Solutions, Immersive Sharing
WE MAKE WE ENABLE Versatile Storytelling Solutions Immersive Sharing Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 13: 2022 Product launches
2022 Product launches HERO10 BLACK HERO10 BLACK VOLTA BONES CREATOR EDITION (CE) FPV Drone Camera “Hollywood in Your Hand” Powered Control Grip Lightest GoPro Ever LED Light Mod & Powered >4 Hours of 5.3K Video Volta Grip Recording Innovation to super-serve our customers is at the heart of what we d
Slide 14: Best-in-class flagship cameras
Best-in-class flagship cameras 1 *Camera with 1 year subscription available only at GoPro.com. 1Battery temperature of 14F / -10C to improve cold performance. Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 15: Compelling GoPro.com subscription service offering
Compelling GoPro.com subscription service offering $49.99 / year ~1.91M Subscribers1 2 • Up to $100 off a new GoPro • Unlimited cloud backup + auto 3 uploads • Up to 50% off @ GoPro.com • No questions asked damage replacement • Full access to the Quik app • Share content on the go 1 As of June 30, 2
Slide 16: Versatile Quik mobile app subscription
Versatile Quik mobile app subscription $9.99 / year ~276k Paid subscribers1 • Import photos and videos from your phone, GoPro, or other camera • Unlimited cloud backup at original quality • Mural automatic video creation Powerful, simple editing tools ▪ Video speed ▪ GoPro-exclusive filters ▪ Premiu
Slide 17: Marketing & Distribution
Speaker/ Date/ Subtitle Marketing & Distribution Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 18: Multi-channel marketing strategy
Multi-channel marketing strategy GLOBAL CHANNEL ATHLETES & SOCIAL SOCIAL ONLINE ADS RESORTS MARKETING VLOG INFLUENCERS TOP TIER EVENTS Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 19: Robust global sales channel
Robust global sales channel GoPro.com: 38% of Retail: 62% of 2Q22 Revenue 2Q22 Revenue GOPRO.COM OTHER ONLINE BIG BOX MID MARKET DISTRIBUTOR 1 >80 Countries 1 ~26k Point of Purchase Displays 1 As of June 30, 2022. Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 20: Recent ESG initiatives
Recent ESG initiatives1 • GoPro’s commitment to environmentally conscious, plastic-free packaging was reflected in its latest HERO10 BLACK camera launch, with “packaging” in the form of a high-quality, durable travel case that's designed to fit additional GoPro mounts and accessories. • Signed the “
Slide 21: Financial Highlights
Financial Highlights Speaker/ Date/ Subtitle Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 22: Improving profitability
Improving profitability TTM Revenue ($M) TTM Non-GAAP Net Income / (Loss) ($M) 1 180 1,161 1,174 1,175 160 156 1,128 146 149 1,062 1,092 141 140 976 892 117 120 100 80 67 60 54 40 20 13 0 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1 See reconciliation in Appendix
Slide 23: Improving profitability
Improving profitability Revenue ($M) Adjusted EBITDA ($M) Quarterly Quarterly 168 1,148 1,195 1,161 892 72 43 250 251 25 22 17 2018 2019 2020 2021 2Q21 2Q22 2018 2019 2020 2021 2Q21 2Q22 1 Revenue includes GoPro.com and Quik. Confidential information. Copyright © 2022. GoPro, Inc. All rights reserve
Slide 24: Higher ASP camera mix
Higher ASP camera mix1 Quarterly 40% 59% 59% 61% 68% 86% 60% 41% 41% 39% 32% 14% 2018 2019 2020 2021 2Q 2021 2Q 2022 < $399 MSRP > - $399 MSRP 1Sell-through ASP/unit Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 25: Growing revenue and gross margins
Growing revenue and gross margins Revenue ($M) & GM% 45% Growing higher margin revenue streams 391 • Direct-to-consumer (DTC) 38% 2Q22 revenue 358 40% • Subscription, up 71% 2Q22 YoY, with 70%- 317 281 80% gross margins 250 251 35% • 93% camera revenue with ASPs >$400 204 217 • Negative 2Q22 $4.5M g
Slide 26: Robust subscriber growth
Robust subscriber growth GoPro subscribers / Subscription Revenue1 ($M) 2,000 65% YoY Subscriber Growth 22 • Subscription revenue up 71% Q2 YoY 1,800 • Subscriber count up 65% Q2 YoY • GoPro.com subs attach rate mid-90s 1,600 17 • Retail attach via mobile at 33%, up ~185% 1,400 Q2 YoY $M Revenue 1,2
Slide 27: Delivering strong cash flow
Delivering strong cash flow Cash & Investments, Net of Debt ($M) • Up 258% YoY 270 • Solid operational performance drives growth 181 179 • Board of Directors approved stock buy- 110 back up to $100M, with $78M1 remaining • 1H seasonally down 59 50 28 (28) (95) 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 28: Appendix
Speaker/ Date/ Subtitle Appendix Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.
Slide 29: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income (loss), net income (loss), diluted net inco
Slide 30: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ● adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; ● adjusted EBITDA and n
Slide 31: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ● non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party tran
Slide 32: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ($ in thousands, except per share data) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 GAAP net income (loss) $ 2,519 $ 5,685 $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) Stock-based compensation: Cost of reven
Slide 33: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ($ in thousands, except per share data) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Numerator: GAAP net income (loss) - Basic $ 2,519 $ 5,685 $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) Add: Interest on con
Slide 34: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ($ in thousands) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 GAAP gross margin 38.3% 41.8% 41.2% 43.6% 39.8% 38.6% 38.0% 35.4% 30.3% Stock-based compensation 0.2 0.2 0.1 0.2 0.2 0.2 0.1 0.2 0.2 Acquisition-related costs — — — — 0
Slide 35: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ($ in thousands) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 GAAP gross margin 38.3% 41.8% 41.2% 43.6% 39.8% 38.6% 38.0% 35.4% 30.3% Stock-based compensation 0.2 0.2 0.1 0.2 0.2 0.2 0.1 0.2 0.2 Acquisition-related costs — — — — 0
Slide 36: APPENDIX: GAAP to non-GAAP reconciliations
APPENDIX: GAAP to non-GAAP reconciliations ($ in thousands) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 GAAP net income (loss) $ 2,519 $ 5,685 $ 52,626 $ 311,761 $ 16,952 $ (10,168) $ 44,413 $ 3,307 $ (50,975) Income tax expense (benefit) 110 (51) (392) (270,228) (11,670)
Slide 37: Thank you
Thank Speaker/you. Date/ Subtitle Confidential information. Copyright © 2022. GoPro, Inc. All rights reserved.